Feb. 13 at 8:06 PM
Midday: First Brands Group and key creditors are discussing moving some units from Chapter 11 into Chapter 7 liquidation as cash runs critically low. The company is already winding down North American operations in Brake Parts, Cardone, and Autolite, and has reportedly been relying on week-to-week funding support, including customer prepayments, to keep essential supply flowing. Distressed pricing reflects the damage: top debt is quoted around 13–16 cents, while lower-priority paper is near zero.
Tickers:
$DAN $BWA $LEA
Here’s what matters: Our view is this is no longer a “reorg story” — it’s becoming an asset-scrap story. If more units flip to Chapter 7, unsecured recoveries likely get crushed further, while OEM supply-chain friction risk rises until replacement sourcing is secured.
